Oaxaca: Progress in Financial Inclusion, But Limited to the Capital

Oaxaca stands out as a state filled with contradictions when it comes to financial inclusion. Although it ranks among the most lagging in the country, its capital is positioned in the top 10 cities for financial inclusion, driven primarily by the tourism that has flourished in recent years.

Among the municipalities with the highest financial inclusion, six belong to Mexico City and two to Nuevo León. The capital of Oaxaca ranks eighth, surpassing Tlalpan in Mexico City, and has improved its position compared to the previous year. This high ranking is attributed to the significant availability of financial products and strong demand from users. As Juan Luis Ordaz, director of financial education at Citibanamex, explained, “tourism is a great driver that promotes the use” of these services. However, there are disparities at the national level. Despite its growth, Oaxaca faces a serious challenge due to the large number of municipalities and issues related to access to infrastructure, placing it at 31st for financial inclusion among the states. Globally, only 45% of Mexicans have an account, one of the lowest rates compared to other emerging economies in Latin America. Citibanamex emphasized that these standings are a result of poor infrastructure and limited access to financial services in these areas, along with a low utilization rate.

What products are most in demand? The survey indicates that the use of mobile banking has seen a significant increase of 18.7%, making it the most requested service. Likewise, point-of-sale (POS) systems have experienced considerable double-digit growth, while ATMs and correspondents grew at a slower, single-digit pace.

It is important to highlight that, while there are advancements in financial inclusion, the gap between urban and rural areas remains wide. The situation in Oaxaca illustrates how tourism can benefit the local economy but also underscores the need to improve financial service infrastructure throughout the rest of the state to close the inclusion gap. Investing in financial education and access to digital technologies will be key to fostering a more equitable participation in the financial system.